It was a little difficult determining over the phone how "motivated" he was so I'll surely figure that out when we meet in person.The owner says there aren't a ton of repairs. 

I mostly do small residential non-recourse loans 1-4 units, but unfortunately not in the North East, where that seems be more difficult to get.  

You aren't too far off and keep in mind it is often extremely difficult to meet the 2% rule in many markets.

Your questions to me are somewhat difficult to answer because I am new to rentals but they give me more to think about, for which I am grateful.- High cash return - I believe you mean the monthly cash flow - yes I would like cash flow, eventually I would like the cash flow to be a modest part time steady income.

@ $15Taxes: $197Insurance (I have no idea how to get crude quotes) so, $75CapEx @ 10% = 334Total Monthly Expenses = $1,334.22 (of which I'd be currently paying myself the $334).Available for Debt Service: $2,006Estimated Debt Service: $700 p/m (rounding up a little bit - I know, still quite crude).Cash flow: $1,306 @ $217 per unit.In short, it looks to me like a difficult but good deal.

@ $15Taxes: $197Insurance (I have no idea how to get crude quotes) so, $75CapEx @ 10% = 334Total Monthly Expenses = $1,334.22 (of which I'd be currently paying myself the $334).Available for Debt Service: $2,006Estimated Debt Service: $700 p/m (rounding up a little bit - I know, still quite crude).Cash flow: $1,306 @ $217 per unit.In short, it looks to me like a difficult but good deal.

Also, its difficult to guide you because your post is not very clear and doesn't contain alot of info.  

I suspect a lot of it is out of their control Chicago can be a very difficult city to rehab in if your not totally on it..

That sounds  very good.Anthony, to your point, I am indeed finding it more difficult to make the numbers work on East Side single unit investments.  

This is difficult at best in the Bay Area.